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Benefits of Supermarkets as Direct Buyers in the Supply
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- Typology of African Agro-Exporters
| Benefits of Supermarkets as Direct Buyers in the Supply Chain: African Cut Flowers The cut-flower industry offers one promising example for future Africa-Asia trade and investment. Traditionally, the majority of Kenyan cut flowers are exported to the Netherlands, where they are sold in auction houses and are then reexported to large markets in the United States or Japan. This rather convoluted process contributes to a much shorter vase life of Kenyan flowers. An emergent trend in the industry is direct sales to supermarkets, which seem keen to cutout the auction houses and buy directly from flower farms abroad. African producers really are the main beneficiary of this new trend. For supermarkets, African flowers are attractive because they are inexpensive and their growers are willing to accept a fixed price. To the African growers, the arrangement is beneficial as well because supermarkets buy large quantities at fixed prices. a The commercial challenge for Kenya is to “cut out the Dutch middleman and sell directly in the United States or in Japan’s more than $10 billion flower market. This Kenyan example could perhaps even be expanded to the whole horticultural sector in Africa. Source: Based on Jaffee (a. ILO 2000. 06-Chap6:06-Chap6 10/9/06 2:39 PM Page 333 334 AFRICA ’ S SILK ROAD : CHINA AND INDIA ’ S NEW ECONOMIC FRONTIER TABLE 6.14 Typology of African Agro-Exporters Type Type name Main characteristics Major facilities Main skills 1 “Briefcase” Very small scale Pickup truck, fax machine Some trading skills trader intermittent and opportunistic sales 2 SME generic Regular sales to regular Small packing shed with Trading and management exporter clientele of one or twosome cold storage capacity skills. At least one quality shipments per week and basic equipment (sorting control person. One or a few mostly sales of loose- tables) persons to interact with packed produce virtually 3–4 pickup trucks farmers. Several produce all sales to wholesaler- grades. based distribution channels 3 Large generic Regular sales to regular Larger packinghouse Supply chain management exporter clientele virtually every facilities with some skills. More quality control day. Mix of loose and automation and significant staff. Several agronomists prepacked produce. Most cold store facilities. Larger and larger number of field sales to wholesaler-based fleet of trucks including staff. distribution channels, some several insulated trucks. to smaller supermarkets. 4 “Premium” Regular supplier to super- Potentially requires develop- Supply chain and food supplier markets and other upmarket ment and operation of one hygiene and HACCP distributors. Most sales are or more farms (to ensure management skills. of prepacked produce with supply control and trace- Multiple layers of quality improved packaging and ability) with investments in assurance personnel. product combinations. farm equipment. Advanced production plan- Upgraded central pack house ning skills, including pro- facilities (stainless steel fessional farm management. tables, improved lighting, Needs to bean “accredited” blast cooling system, good supplier. sanitation, and worker hygiene systems) plus precooling centers in major product sourcing areas. 5 Value-added Same as premium The above, plus separation The above, plus additional prepared food supplier with the addition of high- and low-risk areas food science personnel. operator of a “high-care” line of and distinct “high-care” prepared ready foods rooms with the necessary temperature control and air venting systems, metal detectors, heat sealing equipment. Source: Jaffee 2003. 06-Chap6:06-Chap6 10/9/06 2:39 PM Page 334 INVESTMENT - TRADE LINKAGES IN AFRICAN - ASIAN COMMERCE 335 BOX 6.8 Download 5.17 Mb. Share with your friends:
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